16 October 2017 – fund raising
The group is proposing to raise approximately £4.5m through a placing of shares by way of a bookbuilding process being undertaken by brokers Cantor Fitzgerald. As such the number of new shares to be issued and the placing price are not yet known. The reason for the placing is to provide funds to reduce the company’s debt and also provide funds to invest in the business some parts of which are seeing an increase in business activity. The group has also revealed that delays in certain orders together with cost overruns on certain contracts will lead to lower than expected profits for the year to 30 September 2017. Although this is clearly disappointing we continue to believe that long term prospects remain encouraging and we therefore maintain our recommendation of BUY.